UK charitable giving is declining, with the latest CAF UK Giving Report showing fewer donors and reduced total donations amid ongoing cost-of-living pressures. In this blog Claire Stanley highlights how opportunities remain for charities and fundraisers to adapt and grow through digital innovation.
Earlier this week, CAF published its latest UK Giving Report – which showed that giving across the UK has declined – dropping from £15.4bn in 2024 to £14bn in 2025, and the number of donors fell for the first time in five years. Compared to ten years ago, CAF reports that around six million fewer people are now giving – with the sector losing an estimated £12.4bn over the decade.
Given the cost-of-living crisis, it is not entirely surprising that affordability was the most commonly cited reason for not donating.
But it’s not all doom and gloom for the sector – the report also highlights that 68% of higher rate taxpayers (with an income of £50,000 or more) donated or sponsored in the last 12 months.
At the CIOF, we believe that fundraising in the UK will continue to be increasingly shaped by digital innovation and a shift towards efficiency, personalisation and diversification over the next decade. It must be purpose-led, with senior leaders committed to supporting fundraising through multi-year thinking, bold investment and ambition.
AI continues to offer significant opportunities for improving communications and reducing costs – though we acknowledge concerns around ethics and data-privacy remain barriers to adoption, particularly for smaller charities. However, used correctly, we think there is strong potential for it to enhance supporter engagement and streamline fundraising operations.
The use of data-driven decision-making is also growing, helping charities better understand donor behaviour and increase long-term value – leading to longer-term sustainability for charities and their service users. Regular giving is crucial to increasing this understanding.
Ultimately, a blend of purpose-led fundraising, understanding what makes a great fundraising organisation, and diversified income streams could help charities remain resilient despite economic pressures. And – crucially – as a sector we need to ensure that supporter experience is the best it can be, making sure that people who donate to the causes they care about have the best experience to forge a lifelong journey in giving.
Last year’s CAF report said there need to be a step-change in fundraising – and we’re here to help our members and the wider sector make that happen. Our Championing Fundraising and Growing Giving advisory panels have convened and recognise that change needs to happen – they’ll be looking at how to encourage a giving landscape where great fundraising has the greatest chance of success. Watch this space for the next steps.
